MUSKEGON, MI – A third-party consultant has recommended a conservative financial approach at the Muskegon County Wastewater Management System.

Utility Financial Solutions Vice President Dawn Lund spoke at a meeting of the Muskegon County Board of Commissioners Tuesday, Aug. 12. She recommended against taking on additional debt for capital improvements, and in favor of a series of scheduled increases to the wholesale sewer rates it charges cities and townships.

The waste water plant was built in 1972. Its rare design features an earth-friendly process, with large water treatment pools and farmland where the water is used, all spread over 11,000 acres.

"There is as much debt in the system as there is equity in the system," Lund said. The system has about $65 million in debt and its remaining equity is worth roughly the same amount, she said.

Lund explored the possibility of selling $4 million worth of bonds to pay for equipment replacement at the facility, but recommended against it.

"We want to move to less debt ... but keep the facility healthy," she said. She emphasized that equipment replacement at the aging facility does need to go on – otherwise, the facility is depreciating at a rate of about $6.5 million a year.

A rate increase would have to be approved by the Municipal Wastewater Committee and the Muskegon County Board of Public Works before being enacted. Like previous rate increases, if the wholesale increase is adopted, townships and cities would still have to decide whether or not to pass on the cost to their customers, businesses and residents.

"When we look at 4.3 percent rate increases compared to what's happening across the country, those are low rate increases," she said.